1. What is Economics?
Chapter 1.1

2. The Economic Problem
Although our wants/desires are unlimited, the productive resources available to satisfy these wants are scarce.

3. Not enough productive resources to satisfy people’s unlimited wants.
Scarcity
Not enough productive resources to satisfy people’s unlimited wants.

4. Economics: What is it??
The study of how people use these scarce resources to satisfy their unlimited wants. *choices*

5. Productive Resources Human Resources 2.Natural Resources
3.Capital Resources

6. Goods & Services Productive resources combined  goods and services
Goods: tangible
Services: intangible

7. What is Economics: Activity
Choose a profession that you would like to enter.
Identify the following:
What good/service will you provide?
How does this good/service satisfy a need or want?
Which productive resources will you use?
How can you tell that these resources are scarce?
Share with your partner

8. Four Factors of Production
Land-natural resources – oil, water, wood, iron, gold. etc
Labor-human resources - an individual providing his/her services for wages
Capital-capitial resources - equipment that can be used for production
Entrepreneurship-someone that uses the first three resources to make a profit. Considered to be a “risk taker” and business leader.

9. Copy the Table in your Spiral Notebook!!!
Land
Labor
Capital
Entrepreneurship

10. Determine which of the four factors of production it falls under:
Computer
Forests
Cab driver
Bakery Store Owner
Petroleum
Automobile
Brain surgeon
Factories
Tractor
Highway system
Radio
Mountains
Small restaurant owner
Minerals
Pencil
Computer software developer
Waitress
Ocean
Fish

11. Come Up With 3 Examples of Your Own and include it in your table
Land:
Labor:
Capital:
Entrepreneur:

12. Due to scarcity, every Society Must Answer 3 Questions:
What goods shall we produce?
How shall these goods be produced?
For whom should the goods be produced?

13. In the U.S. the three Qs are answered as follows:
WHAT TO PRODUCE?
U.S. production leans towards consumer goods & service
2. HOW TO PRODUCE?
U.S. believes in private enterprise (corporations and small businesses privately owned)
3. FOR WHOM TO PRODUCE?
U.S. production leans towards the large middle class